SMIC reports 69% drop in H1 earning

MANILA, Philippines — SM Investments Corp. (SMIC), the listed holding company of the Sy Group, reported a consolidated net income of P7.1 billion in the first half of the year, down 69 percent as some of its businesses were hit by the negative impact of the coronavirus pandemic.

“Our half year financial results are within our overall expectations, given the context of the lockdown due to the COVID-19 outbreak which had a greater impact in the second quarter. The results also reflect the group’s continued financial prudence and conservative balance sheet after our banks made substantial provisions for potential customer delinquencies,” said SMIC president Frederic DyBuncio.

Total revenue declined 21 percent to P185.5 billion. The property and banking businesses accounted for 61 percent and 34 percent, while retail accounted for five percent.

Non-food retail saw a marked decline with net income at P522 million from P5.7 billion a year ago. SM Retail reported revenues of P139.2 billion, lower by 18 percent.

“The current environment has been most challenging for our non-food retail and mall operations which have adapted quickly to new customer needs and critical safety considerations. All our businesses will continue to prioritize health and safety, as well as convenience, for our customers and stakeholders,” DyBuncio said.

On the other hand, food retail, residential property businesses and banking continued to perform well despite the pandemic.

In the first half, food retail revenues grew 15 percent with Alfamart posting an increase of 32 percent in revenues in the same period.

SM Prime Holdings Inc., the property arm, posted a consolidated net income of P10.4 billion, down 46 percent from P19.3 billion last year as consolidated revenues amounted to P43.7 billion, 23 percent lower year on year.

The 44 percent drop in malls’ rent income to P13.1 billion was a huge drag for SM Prime.

SM Prime’s residential business, led by SM Development Corp. (SMDC), on the other hand, recorded P23.7 billion in revenue, up 11 percent.